1 YEAR HOME EQUITY LINE OF CREDIT

Creditor:
1 YEAR HOME EQUITY
LINE OF CREDIT
WEBSTER FIRST FEDERAL CREDIT UNION
271 GREENWOOD STREET
WORCESTER, MA 01607-1733
This disclosure contains imDortant information about our 1 Year Home Equity Line of Credit. You should read it carefully and keep a copy for your
records.
1. AVA|LABILITY OF TERMS. A of the terms described below are subject to change. lf these terms change (other than the annual percentage rate),
and you decide, as a result, not to enter into an agreement with us, you are entitl€d to a refund of any fees that you have paid to us or anyone else in
connection with your application.
2. SECURITY INTEREST. We will take a security interest in your home. You could lose your home ifyou do not meet the obligations an your agreement
with us.
3. POSSIBLE ACTIONS, Under certain circumstances, we can:
A. Terminate your line of credit and require you to pay us the entire outstanding balance in one payment;
B. Refuse to make additional extensions of credit; and
C. Reduce your credit limit.
We can terminate your line of credit and require you to pay us the entire outstanding balance in one payment if:
A. You gngage in fraud or material misrepresentation in connection with the line of credit;
B. You fail to make a payment as required by the ag.eement; or
C, Your action or inaction adversely afiects the collateral or our rights in the collate.al.
We can refuse to make additional extensions of credit or reduce your credit limit il
A. The value of the dwelling securing the line of credit declines significantly below its appraised value for purposes of the line of credit;
B. We reasonably boli€ve you will not be able to meet the repayment requirements under the line of credit due to a material change in your
fi nancial circumstancos:
C. You are in default of a material obligation ofthe agreement;
D, Govemment action prevents us from imposing the annual perc€ntage rate provided for in the agreement, or impairs our security inteGst such
that the value of the interest is less than 120 percent of the credit limit on the line ot credit;
E. A regulatory agency has notilied us that continued advances would constitute an unsafe and unsound praclice; or
F. The maximum annual percentage rate is reached.
il. lllNlMU PAY ENT REOUIREiIENTS. You can obtain credit advances for as long as you own your home. During this period, payments will be due
monthly. Your minimum monthly payment will equalthe greater ofthe following:
. $50.00: or
. The amount of accrued fnance charges plus 0.250 percent of the principal balance outstanding on the last day gfthe billing cycle
The minimum payment amount will be rounded to the nearest $.01. Whenever a ffat dolla. amount is used to determine the minimum payment however,
wi b€ rounded to the nearest $.01. The minimum monthly payments may not be sufiicient to fully repay the principal that is
outstanding on your line ol credit for as long as you own your home. It they are not, you will then be required to pay the entire balance in a single
the minimum paiment
payment.
years to
5. MlNlMUlrt PAYMENT EXAMPLE. lf you made only the minimum monthly payment and took no other credit advanc€s' it would take 24
pay off a credit advance of $10,000.00;t an ANNUAL PERCENTAGE RATE of'3.250%. During that period, you would make 287 payments varying
between $52.08 and $50.00, with a linal payment of $33.88.
6. FEES AND CHARGES. Tho tollowing are an estimate of third party feesl
. C.edit report:
. Appraisal:
$-
$-
'
Documentation:
$-
. Title search:
$-
You must carry insurancs on th€ property that secures the line of credit
you
7, REFUNDABILITY OF FEES. It you decide not to enter into this plan within three days ol .eceiving this disclosurs and the Home Equity Booklet'
paid
you
may have already
are entiu€d to a retund ol any fee
8. lllNllluil DRAW REQUIREIIENTS, The minimum c.edit advance that you can receive is $500 00'
cr€dit9. TAX DEDUCTIBIUTY. You should consult a tax advisor regarding the deductibility of interest and ciarges for thE line of
home equity lines
10, AvAtLABlLrTy OF OTHER HOIIE EOUITY PLANS. lf you ask, we will provide you with infomation on our other available
credit.
of
(corresponding to the pe.iodic
11. VARIABLE RATE FEATURES. This tine of credit has a variable rate feature and the annual percentage rate
a
result. The annual percentage rate includes only interest and not other costs. The annual
as
rate) and the minimum monthly paymeni can change
-The
index is the base rate on corporate loans posted by at least 70016 of the 10 largest U,S banks
perdentag; iate is Uased on th'e vaiue of an index.
prime
Rate and is published in the Wall Street Joumal. To determine the annual percentage rato that will apply to
W"tt Stteet Joumat U.S.
kno*n
"jttJ riOit,
"
rjrgin io th" ualue of the index. Ask us tor the current index value, margin, and annual percentage rate. After you open a
Vii"i ii""
"Oa " wjll b€ provided on periodic statem6nts that we send you.
iine of credit, rate intormation
or clecrease by more
12. RATE CHANGES, Ths annual percentage rat6 can change monthly after remaining lixed for 1 yea.. The rate can not.incrEase
is 15'000 percgnt'
of
credit
the
line
during
thaican
apply
RATE
PERCENTAGE
ANNUAL
percent
ge
point(s)
per
The
maximu;
adjustne"nt.
fran r OOO
The annual percentage rate will never be less than the initial rate.
payment at the maximum
13.
ulrl RATE AND pAyifENT EHMPLES. lf you had an outstanding balance ol $10,000.00 the minimum monthly
in the 12th month ('l
ANNUAL PERCENTAGE RATE of i5.000 per""nir"o,;ta be S15O.OO. The miximum annual percentage rate could be reached
year) following an initial hold of 'l year'
00 cr-edit
1il. HISTORICAL EXAMPLES. The fo owing tabte shows how the annual percentage rate and the minim_um paym€nts for a single $10,000
While
day
of
January
first
business
are
from
the
years.ihe
index
values
last
i5
oue,
ttte
in
u'e
inOer
advance would have changea uaseo on Jiriges
year is shown, iayments would have varied duriirg eactr year. The table assumes that no additional credit advances were
onlion" p"yr"nt
indicate how the index
minimum payment was m'aO'e, inO tlat ttre rate remained o;nstrantiuring each year. lt does not necsssarily
tail,n, tfr.:id,nfy tf'e"rount-per
payments
in
the
future
you.
would
change
o.
*i
flltxl
ANNUAL
Minimum
PERCENTAGE
Monthly
Payment
Margin
Year
Index
(%\
("kl
(%)
($)
1999
2000
7.750
0.000
7.750
8.500
9.500
4.750
4.250
4.000
5.250
7.250
8.250
7.250
3.250
3.250
3.250
3.250
3.250
0,000
0.000
0.000
8.500
9.500
7.750(K)
7.750(K)
89.58
93.00
2001
2002
2003
20u
2005
2006
2007
2008
2009
2010
2011
2013
0.000
7.750(K)
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
7.750(K)
7.750(K)
8.250
7.750(K)
7.750(K)
7.750(K)
7,750(K)
7.750(K)
7.750(K)
98.09
81.87
79.44
77.O9
74.81
72.60
73.72
68.36
66.34
64.38
62.47
60.63
58.83
(K) This reflects a lifetime floor ot 7.750 percent
This is not a commitm€nt to make a loan. You hereby acknowlEdge
receipt of this Home Equity Plan Oisclosure and a copy ot the Home
Equity Brochure on today's datE.
Signature
Signature
@1989'2oo3wolb6K|UrgFinanq.|s€M..6-Bank€BsyslemnFdrnHE.otsc.2PT}15.2003356oa60-020custom
,"
Creditor:
2 YEAR HOME EQUITY
LINE OF CREDIT
WEBSTER FIRST FEDERAL CREDIT UNION
271 6REENWOOD STREET
WORCESTER, MA 01607.,1733
This disclosure contains important information aboul our 2 Year Home Equity Line of Credit. You should read it caretully and keep a copy for your
records.
1. AVAILABILITY OF TERtlS. All of the terms describod below are subject to change. lf these terms change (other than lhe annual percentage rate),
and you decide, as a result, not to enter into an agreement with us, you are entitled to a retund of any fees thal you have paid to us or anyone else in
connection with your application.
2, SECURITY INTEREST, We will take a security interest in your home. You could lose your home if you do not meet the obligations in your agreement
with us.
3, POSSIBLE ACTIONS. Under certain circumstances, we can:
A. Terminate your line of credit and require you lo pay us the entire outsianding balance in one payment;
B. Refuse to make additional extensions of crediti and
C. Reduce your credit limit.
We can terminate your line ot credit and require you to pay us the entire outstanding balance in one payment if:
A. You engage in fraud or material misrepresentation in connection with the line of credit;
B. You fail to make a payment as required by the agreement; or
C. Your action or inaction adversely affects the collateral or our rights in the collateral.
We can refuse lo make additional extensions of credit or reduce your credit limit if
A. The value ol the dwelling securing the line of credit declines significantly below its appraised value for purposes ofthe line of credit;
B. We reasonably believe you will not be able to meet the repayment requirements under the line of credit due to a material change in your
financial circumslances:
C. You are in default ot a material obligation ofthe agreement;
D. Govemment action prevents us from imposing the annual percentage rate provided for in the agreement, or impai6 our security interest such
that the value of the interest is less than 120 Dercent of the credit limit on the line ofcredil:
E. A regulatory agency has notified us that continued advances would constitute an unsafe and unsound praclicei or
F. The maximum annual percentage rate is reached.
tNtMUM PAYMENT REOUIRE ENTS, You can obtain credit advances for as long as you own your home. During this period, payments will be due
monthly. Your minimum monthly payment will equal the greater of the tollowing:
. $50.00: or
. The amount of accrued finance charges plus 0.250 perc€nt of the pdncipal balance outsianding on the last day of the billing cycle.
The minimum payment amount will be .ounded to the nearest $,01. Whenever a flat dollar amount is used to determine the minimum payment however,
the minimum payment will be rounded to the nearest $.01. The minimum monthly payments may not be sufficient to tully.epay the principal that is
outstanding on your line of credit tor as long as you own your home. lf they are not, you will then be required to pay the entire balance in a single
payment.
4.
5. illNlMUM PAYXIENT EXAMPLE. lf you made only the minimum monthly payment and took no other credit advances, it would take 24 years to
pay off a credit advance of $10,000.00 at an ANNUAL PERCENTAGE RATE of 3.250%. During that period, you would make 287 payments varying
between $52.08 and $50.00, with a final payment of $33.88.
6. FEES AND CHARGES. The following are an estimate of third party fees:
. Credit report
. Appraisal:
$-
$-
'
Documentation:
$-
. Title search:
$-
You must carry insurance on the property that secures the line of credit.
Z. REFUNDABILITY OF FEES. tf you docide not to enter into this plan within three days of receiving this disclosure and the Home Equity Booklel, you
are entitled to a refund of any lee you may have already paid.
8. ltlNltYlUM DRAW REQUIREITIENTS. The minimum credit advance that you can receive is $500 00.
9. TAX DEDUCTIBILITY, You should consult a tax advisor regarding the deductibility of interest and charges tor the line of credit.
10, AVA|LABILITY OF OTHER HOiIE EQUTTY PLANS. lf you ask, we will provide you with information on our other available home equity lines of
credit.
.ll. VARIABLE RATE FEATURES. This
line oI credil has a variable rate teature and the annual percentage rate (corresponding to the periodic
rate) and the minimum monthly payment can change as a result. The annual percentage rate includes only interest and not other costs. The annual
pe;ntage rate is based on th'e vaiue of an index. the index is the base rate on corporate lo€ns posted by at least 70% of ihe 10 largesl U.S. banks
inown as'the Wa Street Joumat U.S. Prime Rate and is published in the Wall Street Journal. To determine the annual percentage rate that will apply to
your line of credit, we add a margin to the value of the index. Ask us for the cunent index value, margin, and annual percentage rate. Afte. you open a
iine ofcredit, .ate information will be provided on periodic stalements that we send you.
12. RATE CHANGES. The annual perc€ntage rate can change monthly after remaining lixed for 2 years. The rate can not increase or decrease by
ror" tir"n t.OOO p"r"entage point(s) per adj-ustment. The ma;imum ANhUAL PERCENTAGE RATE that can apply during the line of credit is 15.000
percent. The annual percentage rate will never be less than the initial rate
13. MAXTMUM RATE AND PAYMENT EX,AMPLES. lf you had an outstanding balance of $ 10,000.00 the minimum monthly payment at the maximum
('l
ANNUAL PERCENTAGE RATE of 15.000 percent would be $150.00. Ihe maximum annual percentage rate could be reached in the 12th month
year) following an initial hold of 2 years.
14. HTSTORICAL EXAMPLES. The following table shows how the annual percantage rate and the minimum payments tor a single $10,000.00 credil
While
advance would have changed based on chan-ges in the index over the last 15 years. The index values are from the tirst business day of January
were
credit
advances
no
additional
year.
that
The
table
assumes
each
have
varied
dudng
year
would
is
shown,
paymeni
amount-per
only one
iayments
tat6n, thit 6nly the minimum payment was mad;, and that the rate remained constant during each year. tt does not necessarily indicate how the index
or your payments would change in the future.
ANNUAL
Year
lndex
Margin
("/.1
e/"\
0.000
750
8.500
9.500
1999
2000
2001
2003
2004
2005
8.250
7,250
0.000
0.000
3.250
3.250
3.250
3.250
3.250
201'l
2012
2013
9.500
7.750(K)
7.750(K)
7.750(K)
7.750(K)
7.750(K)
8.250
7.750(K)
7.750(K)
7.750(K)
7.750(K)
7.750(K)
7,750(K)
0.000
0.000
0.000
7.250
2010
7.750
7.750
0.000
0.000
0.000
5.250
2006
2007
2008
2009
e\
0.000
0.000
0.000
4.750
4.250
4.000
2002
PERCENTAGE
RATE
0.000
0.000
0.000
(K) This reflects a lifetime floor of 7.750 percent.
This is not a commitment to make a loan. You hereby acknowledge
receipt of this Home Equity Plan Disclosure and a copy of the Home
Equity Brochure on today's date.
@ 1989. 2003
wollec Xlu$€r
Financial s€Nics6
n
- Eank€.s Svstom! Fom
HE-OISC-2PI
Signature
9-1t2oo3 3560484{20
Custom
Minimum
Monthly
Paymenl
($)
89.5E
86.93
98.09
a1.87
79.44
77.09
74.81
72.60
73.72
68.36
66.34
64.38
62.47
60.63
58.83
UTEOIOI
1 YEAR CT HOME EQUITY
LINE OF CREDIT
WEBSTER FIRST FEOERAL CREDIT UNION
271 GREENWooD STREET
WORCESTER, MA 01607.1733
recoros.
I AVAILABIL|TY OF TERilS. All of the lerms described below are subject to change. lf these terms change (other than the annuat percentage rate),
and you decde, as a resull. nol to enler into an agreement with us, you are entifledlo a refund of any fees-that you have paid to us ;r anyon; else i;
connection with your application.
2. SECURITY INTEREST. We wrll take a security interest in your home. You could lose your home if you do not meet the obligations in your agreement with
us.
3. POSSIBLE ACTIONS. Under certain circumstances. we can:
A. Terminale your lineof credil and r€quire you to pay us the entire outstanding balance in one payment;
B. Refuse to make additional extensions of credit: and
C. Reduce your credit limit.
We can lerminate your line of credit and require you lo pay us the entire outstanding balance in one pavment
if
A. You engage in fraud or matenal niisrep'resentati6n in connecton with the Ine of
B. You failto make a payment as requi.ed by the agreement; or
C. Your action or inaciioir adversely iffeas tire coll;teral or our rights in the collateral.
We can rcfuse to make additional extensions of credit or reduce vour credit limit if:
A. The value of the dwelling securing the line of credit deciines signifrcantly below its apprarsed value for purposes of the line of credit;
credit;
B, We reasonably believe you will not be able to meet lhe repayment requirements under lhe line of credit due to a material change in your
fi nancial circumstances;
C. You are in default of a material obligation ol the agreement;
D. Governmenl action prevents us from imposing the annual percentiage rate provided for in the agreement, or impairs our gecurity interest such
that the value of the interest is less than 120 percent of the credit limit on the line of credit;
E. A regulatory agency has notified us that continued advances would constitule an unsate and unsound practice; or
F. The maximum annual percentage rate is reached.
4. MlNllluit PAYIUIENT REQUIREiIENTS. You can obtain credit advances for 5 years (the'draw period"). During this period, payments will be due
monlhly. Your minimum monlhly payment will equal the greater of the following:
. S50 00: or
' The a;ount ot accrued finance charges plus 0.250 percent of the pdncipal balance outstanding on the last day of the billing cycle.
-payment
The minimum payment amount willbe rounded to lhe nearest $.01. Whenever a flat dollar amount is uaed to determin'e the minimJm
however,
the minimum payment will be rounded to the nearest $.01. The minimum monthly payments during the draw period may not reduce the'principal that is
outstanding on your line of credit.
Afrer the dlaw period_ends, you w]ll no longer be able to obtain credit advances and must pay the outstanding balance on your line of credit (the
"repayment pe.iod.') The length of the repayment period is 15 years. During the repayment pariod, payments will be due mbnthly. Your mininium
monthly payment will equal the greater of the following
. $50.00. or
' 0.556 percent of the prinqpal balance outstanding on the last day of the draw period.
The mrnimum payment amount wili be rounded lo lhe neirest $.01. Whe;ever a flat dollar amount is used lo determine lhe minimum gavment however.
the minimum payment will be rounded to the nearest $.01. The minimum monthly payments may not be sufficient to fully repay the -princrpal that is
outstanding on your line of credit by the end of the repaymenl period. lf they are not, you will then be required to pay th-e entiir balance ih a single
paymenl.
5.-MlNlM-UM PAYMENT.EXAMPLE. lf you made only the minimum monthly payment and took no other credit advances, it would take 20 years to pay
off a credil advance of $10,000.00 at an ANNUAL PERCENTAGE RATE of 3.250olo. Dwing that period, you would make 60 payments varying betwben
$52.08 and $50.00 followed by 't79 payments of $50.00, with a final payment of $2,283.54 6. FEES AND CHARGES. The following are an estrmate of third party iees:
g-
. Credit report:
. Documentation:
.litle search:
' Appraisal:
You must carry insurance on the property that secures the line of credit.
7. REFUNDABILITY OF-FEES, lf you decide not to enter into this plan within three days of receiving this disclosure and the Home Equity Booktet, you
are entitled to a retund of any fee you may have already paid
8. illNlirUM DRAU, REQUIREMENTS. ihe minimum ;rbdit advance that vou can receive is $500.00.
.
$-
_
$-
$-
9. NEGATIVE AMORTIZATION, Under some circumstances, your monihly payment will not cover the finance charges that accrue and "negalive
amoJtization will occur. Negatrve amortization will increase the amount that you owe us and reduce your equity in your h6me.
10. TAX DEDUCTIBILITY. You should consult a lar advisor regarding lhe d6ductibrlity of interest ana chardes'for t'he line of credit.
11. AVAILABILITY OF OTHER HOltlE EOUITY PLANS- lf you ask, we will provide yod with information on o-ur other avaibbb home equity tines of credit.
12. VARIABLE RATE FEATURES. This line of credit has a variable rete feature and lhe annual percentaqe rate (corresDondind to the oeriodic
rate) and the minimum monthly payment can change as a result. The annual percentage rate includds only inierest and not bther c-osts. Thi annual
percentage rate is based on the value of an index. The index is the base rate on corporate loans posted by at least 700/6 of the 10 largest U.S. banks
known as the wall Street Journal U.S. Prime Rate _and is published in the Wall Street Journal. To ditermine ihe annual percentage rate ihat will apply to
your line ofcredit. w.e add a margin to the value of lhe index. Ask us for the cunedt index value, margin, and annual pircentagJ rale. Atter you tifein a
line of credit, rale infonnation will be provided on Deriodic stiatements that $€ seno vou_
13. RAT^E^CHANGES. The annual percentage raie can change mgnllly gqel le]llelliilg fixed for 1 year. The rate can not increase or decrease by more
than 1 .o00,percentage point(s).per adjustment. The maxrmum ANNUAL PERCENTAGE RATE thaf can apply during the line of credit is 15 000 pirrcent
Ihe annual percentage rate will never be less than the initial rate.
MAXIi|Ull RATE ANO PAYUENT EXAMPLES. lf you had an outstanding balance of $'10,000.00 at the beginning of the draw period, the mrnrmum
monthly payment al the maximum ANNUAL PERCENTAGE RATE of 15.000 percent would be $150.00. The niaximim annuat pe;centage rate during
the draw period, could be reached in the 12th month ('lyear) following an init|al hold of 1 year.
!IJ9"^!?9-91g,4"l1[ding balance of $10.000:00 a! t!;) begrnning oi the repaymenl peirod, the minimum monthly payment at the maximum ANNUAL
P^ERCENTAGE RATE of 15.000 percent would be $55.60. ihe maximum ariniat perientage rate dunng the repayinierit period, coutd be reached in the
13th monlh (1 year, '1 month).
15. HISTORICAL EXAIUIPLES. The following table shows how lhe annual pcrcentage rate and the minimum payments tor a single $1O,OOO.OO credit
advance would have changed based on changes in the index over the last 15 years. The index values are from th'e first business d-ay of Januarv. While
only one paymenl anounl per year is shown, payments would have varied during each year ol the draw period. The table assumei that no additional
credrt.actvances were taken, lhal only th€ minimum payment was made, and that the rate remained constant during each year. lt does not necessarily
14.
indicate how the index or your payments would change in the tuture.
ANNUAL
Year
Inoex
PERCENTAGE
RATE
Margin
(0/6\
(o/o\
t0/6\
7.750
8.500
9.500
4.750
4.250
4.000
0.000
0.000
0.000
0.000
0.000
0.000
7.750
2005
2006
5.250
2007
8.250
2008
2009
2010
7.250
3.250
0.000
0.000
0.000
0.000
0.000
0.000
1999
2000
2001
2002
2003
2004(o)
2011
2012
2013
7.250
3.250
3.250
3.250
3.250
8.500
9.500
7.750(K)
7.750rK)
7.750(K)
7.750(K)
7.750(K)
8.250
7.7s0(K)
7.750(K)
7.750(K)
7.750(K)
7.750(K)
7.750(K)
0.000
0.000
0.000
Minimum
Monthly
Payment
(s)
89.58
93.00
98.09
81.87
79.44
50.00(M)
50.00(M)
50.00(M)
50.00(M)
s0.00(M)
s0.00(M)
s0.00(M)
50.00(M)
50.00(M)
50.00(M)
(K) This reflects a litetime floor o17.750 percent.
(M) This minimum monthly payment is insufticient to pay the accrued interest on the balance, c€using negative amortization to occur.
(O) The repayment period begins in this year.
This is not a commitment to make a loan. You hereby acknowledge
receipt of this Home Equity Plan Disclosure and a copy of the Home
Equity Brochure on today's date.
@ 1989.2003 woltels Kluwer Financiar S€Nices- Banksrs Systemsr Fom HE-DISC-2PT
Signature
Signature
$1t2003
3560485-020
Date
2 YEAR CT HOME EQUI7Y
LINE OF CREDIT
WEBSTER FIRST FEDERAL CREDIT UNION
271 GREENWOOD STREET
woRcESTER. MA 01607-1733
Creditori
This disclosure contains imporlant information about our 2 Year CT Home Equity Line of Credit. You should read it carefully and keep a copy foi your
recoros.
l.
AVAILABILITY OF TERMS. All of the terms described below are subject to change. lf these terms change (other than the annual percentaqe rate),
and you decide, as a result. nol to enler into an agreement with us. you are entitled-to a refund of any feesihdt you have paid to us 6r anyonE else in
conneclion with your application.
2. SECURrrY IMIEREST. We will take a security interest in your home. You could lose your home if you do not meet the obligations in your agreement with
us.
3. POSSIBLE ACTIONS. Under certain circumslances, we canl
A. Terminale your lineof credit and require you to pay us the entire outstianding balance in one payment;
B. Refuse to make additional extensions of credit: and
C. Reduce your credit limit
We can terminate your line of credil and require you to pay us the entire outsianding balance in one paymenl :
A. You engage in fraud or material misrepresentalion in connection with the iine of credit;
B. You fail to make a payment as required by the agreement: or
C. Your action or inactioir adversely affecis t'he colliteral or our riqhis in the collateral
We can refuse lo make additional extensrons of credit or reduce vour credit limit if:
A. The value oflhedwelling securing the line ol credit declines signfrcantly below its appraised value tor purposes of the line of credit;
E. we reasonaDly Delleve you wlll not be able to meel lhe repayment requirements under the lne of credit due to a malerial change In your
fi nancial circumslances:
C. You are In default of a rnaterial obliqation of lhe aoreement:
D. Governmenl action prevents us froin imposlng thE annual perc€nl,age rate provided for in the agreement, or impairs our secunty interest such
lhal the value of the interest is less than 120 aercent ofthi credit limit on tfie line of credit,
E. A regulatory agency has notitied us thal continued advances would conslitute an unsafe and unsound practice; or
F. The maximum annual percentage rate is reached.
4. l{lNlMuil PAY ENT REQUIREIIENTS. You can obtain credit advances for 5 years (the'draw period"). During this period, payments wil be due
monthly
monthly payment willequal the greater of the following:
^YouJ-minimum
. $50.00.
or
' The amount of accrued finance charges plus 0.250 percent oJlhe principal balance outstandtng on the last day of lhe billing cycle.
p"y-9tlt amount will be rounded to the nearesl $ 01 When;ver i flat dollar amount is u-sed to detennin'e the minimrim 'paymenl however,
II"
T'l-uT
lhe mrnimum paymenl will be rounded to the nearest $.01. The minimum rnonthly paymenls during the draw period may nol reduce lhe'principal that i;
outstanding on your line ot credit.
Atle. lhe d€w period_ends, you will no longer be able lo oblarn credit advances and must pay the outstanding batance on vour t|ne of credit (the
-repayment penod. The length of.the repayment penod is
)
t5 years. Dunng the repayment period. payments will be due mbnthty yorir mininium
montnrypayment wrl equal lhe grealer of the following:
. $5U.UU:
Or
. 0.556 percent of the pnncipal balance outstanding on the last day of the draw period.
_.
lne mrnlmum payment amount will be rounded to lhe nearest
$.01. Whenever a flat dollar amount is used lo determine lhe mintmum oavmenl however.
the minimum payment will,be rounded to the nearest $.01. The minimum monthly payments may not be sufficient to tuttv repai ttie
iiincibii Irrat-G
'Ualjrice
i'n i ilnlre
9*:3gi"S on your line of credit by the end of the repayment period. lf they are-nbt,-you will thirn be required to pay itr'e etiitrl
paymenr.
5.
ltllNltlull
PAYI$ENT EXAMPLE. lf you made only the minimum monthly pavment and took no other credit advances, it would take 20 vears to Dav
off€ credit advance of $10.000.00 at ad ANNUAL PERcENTAGE RATE of'3:r{io-"/.-Dunng thar period. you worra
$52.0a and $50 00 fo owed by 179 payments of $5O.OO. w h a finat pavmen[ot $Z,ZgS 5a "
6. FEES AND CHARGES. The following are an estimate of third pariy f;es:
.
-
'Appraisal: $'.credit reportr. $ce.ry insufance on the property that secures the line of credit
. Documentation:
You musl
g-
rir!
.
oo
ii"i.di[";;'i,il;"il5;i
Ti e search:
$_
7' REFUNDABILITY OF FEES. lf vou decide not to enter into this plan within three days ot receiving this disclosure and the Home Equity Booktet, you
are entitled to a refund of anv fee vbu mav have akeadv oaid
8. lrllN|HUH DRAW REQUIREIENTS. The minimum irbdit advance thal you can receive is $5OO.OO.
9. NEGATIVE A ORTIZATION. Under some crrcumsiances, your monihly payment will not cover the tinance charges thal accrue and "negalrve
9!n9!ti{9tiol:y'!_o.g"-gr Negative amortization wi increase the ahount that ybri oive usanO reOuce ybui equitv in vour n6.e.
10. TAx DEDucTlBlLlTY. You should consull a tax advisor regarding the d6ductibitity of interest;na chaid;;'foi thiiinJot creoit.
ll. AvAlL.ABlLlw oF OTHER Hol|E EQUITY PLANS- lf you -sk, wE will provide yoJ with info;;tro;;; oi;;fie; avJiaote nome equity lines of cred .
12. VARIABLE RATE FEATURES. This line of credit h-as a variable rite feature and lhe annual percentaoe rale (corresDondrno lo the oelodic
rate) and the minimum monthly paymenl can change as a result. The annuat percentage rate inctuddJ onty iniereli aia .iot 5rtiii c-osG.'ihJ;ffi;]
percemage rate rs Daseo on the value ol an index. The index is the base rate on corporale loans posted btat least 70% of the 'lO
largest U.S. banks
known as lhe WallStreet Joumal U.S Prime Rate and is publEhed in the Wall Street iorjrnal. To ddtermine he annual percentaqe rate ihat willaoDlv to
r-"^glt
a ma€in to the value of the index. Ask us for the cunent index vatue. miigin. anii lnni.,il f5r-C"-n-ii'gJ;;te. liiiEi;il;6;'"';
Y9!lflT^.j.c
,I:_1qq
rne ol.cJeorl, rate Intormatton will be provided on periodrc statements that we send you
13. RATE CHANGES. lhe annual percentage rate can change monthiy after rerilaining fixed for 2 years. The rale can nol Increase or decrease bv
percentage pornl(s) per adjustment The maximum ANNUAL PERCENTAGE RATE that can appty during the tine of credit is 15.006
I9-1"-llallher 999
percent.
annual percentiaqe rate will never be less than the initial rate.
14. ]{AxlMUU RATE AxD PAYMENT El!4{B1ESj.lrygg
an_outstanding balance of $1o,ooO.OO at the beginning of the draw period. rhe minimum
monthly payment at lhe maximum ANNUAL PERc-ENTAGEIad
RATE of 15.ooo-percent woutd be $150.00. rne riaxrmim annuif pd;ntab;;ab dffig
the draw period, could be reached in the 12th month (1 yeaO lo owing an initiai hotd of 2 years.
lIJg"^Ig9- ?19,{"gPit}s- 991:l* of $10.000.00 at ihd beginning oithe repayment pe;od, the minimum monthty payment ar the maxrmum ANNUAL
TJEHUEN lAUb RA lE ol 15.000 percent would be $55.60. ihe mEximum arinrial perientage rate during the repayinierit period, coutd be reached
in-iht
13th month ('l year, 1 month)
15. HISTORICAL EXAMPLES. The following table shows. how the.annual p€rcentage rale and the minimum payments for a single $'jO,Ooo.oo cred{
advance would have changed based on changes in the inder over the lasl i5 years.ihe index vatues are froni tfie nrsi ousiness ,i'av of Januarv. While
only.one paymenl amount per year rs shown, payments would have varied during each year ol the draw period. The table assumea that no additional
9r9oll€oJanc€s were laKen, that only the mlnmum payment was made. and that the rate remained constant during each year. lt does not necessarily
Inorcale how the Index or your payments would change in the tuture.
ANNUAL
Year
lndex
lv"'t
Margin
(ok\
1999
7.750
0.000
2000
8.500
2001
s.500
4.750
4.250
4.000
0.000
0.000
0.000
2002
2003
2004(o)
0.000
0.000
0.000
0.000
0.000
0.000
0.000
5.250
7.250
2007
8.250
7.250
2009
2010
3.250
3.250
2011
3.250
2012
2013
3.250
3.250
0.000
0.000
0.000
0.000
PERCENTAGE
RATE
(ok\
7.750
7.750
9.500
7.750(K)
7.750(K)
7.750(K)
7.750(K)
7.750(K)
8.250
Minimum
Monthly
Payment
($)
E9.58
86.93
98.09
81.87
79.44
50.00(t\4)
50.00(M)
s0.00(M)
50.00(M)
7.7s0(K)
s0.00(M)
7.750(K)
7.750(K)
7.750(K)
7.750(K)
50.00(M)
50.00(M)
50.00(M)
50.00(M)
50.00(M)
7.7s0(K)
(K) This reflecls a lifetime fioor of 7.750 percent.
(M) This minimum monlhly payment is insutfrcienl to pay lhe accrued inlerest on the balance, causing negative amortization to occur.
(O) The repayment period begins in this year.
This is not a commitment to make a loan. You hereby acknowledge
receipt ot this Home Equity Plan Disclosure and a copy of the Home
Equity Brochure on today's date.
@ 1989 2003 WoteB Klwor Finarcial SeNices
-
Bankers Systoms
n Fom
HE-DISC-2PT
Signatuae
Date
Signature
Date
+1t2OO3 3560484,020